6 Bare Trust Reporting tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to bare trust reporting work, not a general example.
Case Study 1 · Scaling without breaking
Growth Handled Without A Missed Filing, $54,000 Freed — Family Transferring a Farm, Vancouver
Client: A family transferring a farm to the next generation · Where: Vancouver, British Columbia · Engagement: 7 weeks, fixed fee
Cash freed$54,000
Compliance failuresNone
ReportingMonthly
The situation
A family transferring a farm to the next generation in Vancouver, British Columbia was opening in a second province — different filing obligations, a different payroll regime, and a trust that had never filed a T3 under the expanded reporting rules already in the file.
What we did
We filed the outstanding T3 returns with full beneficial-ownership schedules and secured relief on the late-filing penalty and put monthly reporting in place so the owner could see the cash effect of growth while there was still time to act on it.
The result
Growth was absorbed without a compliance failure. $54,000 of cash was released, and the monthly reporting now flags a problem while it is still small.
Case Study 2 · CRA review defended
Audit Defence Closed In 4 Weeks, $136,000 Cleared — Executor Administering an Estate, Guelph
Client: An executor administering an estate · Where: Guelph, Ontario · Engagement: 4 weeks, fixed fee
Proposed tax cleared$136,000
Review duration4 weeks
OutcomeNo change
The situation
An executor administering an estate in Guelph, Ontario was selected for review after a final return filed without the rights-or-things election, leaving a second set of credits unused showed up in the CRA's automated matching. The proposed adjustment on bare trust reporting came to $136,000.
What we did
We implemented an estate freeze with a supported valuation, capping the current generation’s exposure and moving future growth to the successors. Every figure in the response traced to a source record the auditor could verify without asking a second question.
The result
The review closed with no change. $136,000 of proposed tax came off the table, and the documentation now in place makes the next review a short one.
Case Study 3 · Missed incentive claimed
$54,000 In Credits Claimed That Prior Filings Had Missed — Spousal Trust Following a, Windsor
Client: A spousal trust following a death · Where: Windsor, Ontario · Engagement: 11 weeks, fixed fee
Credits claimed$54,000
Years adjusted7
Review outcomeNo adjustment
The situation
A spousal trust following a death in Windsor, Ontario had been filing for 7 years without ever claiming the incentives its activity qualified for. Behind that sat a final return filed without the rights-or-things election, leaving a second set of credits unused.
What we did
We tested each activity against the eligibility criteria rather than the description on the invoice, then made the graduated rate estate designation and re-filed, moving the estate off top-marginal-rate taxation for its first three years.
The result
$54,000 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 4 · Sale and succession
$730,000 Sheltered By The Lifetime Capital Gains Exemption — Business Owner Planning an, Regina
Client: A business owner planning an estate freeze · Where: Regina, Saskatchewan · Engagement: 7 weeks, fixed fee
Gain sheltered$730,000
ClosingOn schedule
Share qualificationMet
The situation
A business owner planning an estate freeze in Regina, Saskatchewan had an offer on the table and 11 months to close. The shares did not qualify for the capital gains exemption, and a minute book with no resolutions behind a decade of dividends was part of the reason.
What we did
We purified the corporation so the shares met the qualifying tests, then filed the separate rights-or-things return alongside the final T1, claiming a second set of personal credits well ahead of the closing date.
The result
The sale closed on schedule with $730,000 sheltered by the lifetime capital gains exemption across the shareholders.
Case Study 5 · Backlog brought current
Collections Halted And $35,500 Cut From A 7-Year Backlog — Corporation Planning an Intergenerational, Saskatoon
Client: A corporation planning an intergenerational transfer · Where: Saskatoon, Saskatchewan · Engagement: 3 weeks, fixed fee
Balance reduced by$35,500
Backlog cleared7 years
CollectionsHalted
The situation
By the time a corporation planning an intergenerational transfer in Saskatoon, Saskatchewan called, 7 years were outstanding and the CRA had assessed on estimates. Underneath it sat a farm transfer completed without using the intergenerational rollover.
What we did
We reconstructed the records year by year and filed the outstanding T3 returns with full beneficial-ownership schedules and secured relief on the late-filing penalty. Each filing replaced an arbitrary assessment with a real one.
The result
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $35,500, and a relief application addressed part of the accumulated interest.
Client: An estate holding a private corporation · Where: Winnipeg, Manitoba · Engagement: 10 weeks, fixed fee
Annual saving$67,000
ReorganisationTax-neutral
StructureMatches operations
The situation
An estate holding a private corporation in Winnipeg, Manitoba was carrying a trust that had never filed a T3 under the expanded reporting rules, and every option for fixing it ran through a reorganisation that had to be done without triggering tax.
What we did
Working with the client's lawyer, we implemented an estate freeze with a supported valuation, capping the current generation’s exposure and moving future growth to the successors and prepared the elections, resolutions and valuations the structure needed to stand up.
The result
The structure now matches the business. Annual saving of $67,000, and the reorganisation itself was tax-neutral.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
